Brown Relaxes State Regs on ‘Made in the U.S.A.’ Label

0

Apparel makers and other manufacturers may breathe a sigh of relief at Gov. Jerry Brown’s decision to sign into law an amendment to what’s become known as the “Made in the U.S.A. Law.”

Brown signed Senate Bill 633 on Tuesday, amending a section of California’s Business and Professions Code. The change allows products sold in the state to be labeled as “Made in the U.S.A.” as long as no more than 5 percent of the wholesale value of the product is not made overseas. That level increases in some circumstances to 10 percent, according to the text of the amendment.

Previously, companies were prohibited from using the label if any portion of their product was made outside the country. Manufacturers dealt with the strict definition by adding labels that said things such as “Made in the USA with imported components.”

Some manufacturers found the old requirements onerous. It was difficult to isolate products sold in California from those they sold in other states, which often had more lenient laws, or those that complied with the federal definition, which allowed the label if minor parts were made overseas.

A number of L.A.-based premium denim makers that use the Made in the U.S.A. labeling became targets of litigation over the designation. At least one case, involving local denim maker AG Adriano Goldschmied Inc., was filed two years ago and remains unresolved.

The L.A.-based California Fashion Association had focused lobbying efforts with the California Retailers Association on getting the amendment passed. While no one was available to comment on Brown’s signing, the association sent comments from its May letter to members applauding the state Senate Judiciary Committee’s passage of the bill.

“Similar bills to amend the law, contradicting the federal requirements, were defeated every year for the past three years in the Judiciary Committee of the California legislature,” the letter said. “We are proud to inform you that CFA’s focused efforts, along with the lobbying strategy of the California Retailers Association, were successful thus far!”

According to the letter, the 10 percent threshold for including “non-U.S.A.-made” items refers to items such as buttons, zippers and thread, which had been preventing manufacturers from using the label in California.

No posts to display